Fareed Zakaria Fails to Appreciate the Fruits of ThatcherismComments for Fareed Zakaria Fails to Appreciate the Fruits of Thatcherism at http://www.cepr.net , comment 1 to 3 out of 3 commentshttp://www.cepr.net
Tue, 31 Mar 2015 16:56:14 +0100FeedCreator 1.7.3rising wages?http://www.cepr.net/index.php/blogs/beat-the-press/fareed-zakaria-fails-to-appreciate-the-fruits-of-thatcherism#comment-23184
That Zakaria thinks rising wages were a "problem" tells everyone all they'll ever need to know about him. - edward ericson jrThu, 11 Apr 2013 10:02:05 +0100...http://www.cepr.net/index.php/blogs/beat-the-press/fareed-zakaria-fails-to-appreciate-the-fruits-of-thatcherism#comment-23180
It always amazes me that the neolibs don't take responsibility for their policies and their outcomes. If you can remember back to the 1980s, you know that the general mean-ing of the culture and politics was what they wanted. Instead of taking responsibility for the consequences of their choices, they adopt a "we didn't mean this" pose. - PeonInChiefThu, 11 Apr 2013 05:26:57 +0100...http://www.cepr.net/index.php/blogs/beat-the-press/fareed-zakaria-fails-to-appreciate-the-fruits-of-thatcherism#comment-23176
I think Dean is on the right track when he says that "central banks have deliberately raised unemployment in order to keep inflation low" but was this really a consequence of Thatcher-Reaganism?. The Fed and other central banks started raising rates in the 60's and their policy rates reached extremely high levels before either Thatcher (1979) or Reagan (1981) took power. As I have mentioned before, the 70's was when real wages crashed. Central banks' action failed to suppress inflation, by the way.
The consensus among economists of various kinds, including Keynesians and monetarists, was that monetary policy could control both inflation and employment - this was not something invented by Goldwater, Reagan or Thatcher. The fact that both inflation and unemployment reached very high levels during the time when central banks were most active does not seem to have shaken the faith of many economists in monetary policy and the Maestros are still expected to solve all problems with magical manipulations - sometimes just by announcing what they will not do in the future.
- skeptonomistThu, 11 Apr 2013 04:17:07 +0100